Hi Bhuvana,
Mr. Rajendra Marathe is correct,
There is no such type of rules where the basic salary is restricted to Rs, 6500/-, you can contribute your PF contribution on your actual basis salary, if more than Rs. 6500/-. But if your basic salary is more than 6,500 and you are contributing your pf amount on that so your company has to contribute the same amout on your actual basic salary, so it will be more burden on employer to pay more money and also admin charge will be more. So most of the company restricted their PF elligible basic salary to Rs. 6500/-. So it is totally depend on managment rules, how much benifit they want to give their employee.
Rs. 6,500 is restricted for Pension & EDLI part only. The RPFC can provide the Pension & EDLI benifit upto Rs. 6500/- only. You can contribute to Pension account (A/C - 10) upto Rs. 541/- (Rs. 6500 x 8.33%) not more than that.
Regards,
Dibyendu Ghosh
From India, Calcutta
Mr. Rajendra Marathe is correct,
There is no such type of rules where the basic salary is restricted to Rs, 6500/-, you can contribute your PF contribution on your actual basis salary, if more than Rs. 6500/-. But if your basic salary is more than 6,500 and you are contributing your pf amount on that so your company has to contribute the same amout on your actual basic salary, so it will be more burden on employer to pay more money and also admin charge will be more. So most of the company restricted their PF elligible basic salary to Rs. 6500/-. So it is totally depend on managment rules, how much benifit they want to give their employee.
Rs. 6,500 is restricted for Pension & EDLI part only. The RPFC can provide the Pension & EDLI benifit upto Rs. 6500/- only. You can contribute to Pension account (A/C - 10) upto Rs. 541/- (Rs. 6500 x 8.33%) not more than that.
Regards,
Dibyendu Ghosh
From India, Calcutta
Dear Bhuvana, Company neednot to pay its contributions more than RS.6500. But in some companies they are contributing on the total salary also.
From India, Madras
63From India, Madras
Hi Mahesh,
Did you submit the forms in PF department or with the earlier employer. If with employer it takes minimum of 90 working days hence there are few process.
If you have submitted in PF department then it should come to you in 30 days, but due to the delay in PF department it takes even more than 2 months.
Any how you better contact to the PF department and ask the status with full PF number or take the acknowledgement with youl
Tell me the company location & the PF office location.
Regards
Jeeva
9343753361
From India, Bangalore
Did you submit the forms in PF department or with the earlier employer. If with employer it takes minimum of 90 working days hence there are few process.
If you have submitted in PF department then it should come to you in 30 days, but due to the delay in PF department it takes even more than 2 months.
Any how you better contact to the PF department and ask the status with full PF number or take the acknowledgement with youl
Tell me the company location & the PF office location.
Regards
Jeeva
9343753361
From India, Bangalore
As per P.F Act/ rules, the employer cotribution towards P.F is 12% on basic salary out of which an amount of Rs 541/- on Rs 6500/-@8.33% is paid towards pension fund and the remaining balance of Rs 231/- is adding to employee account(6500x3.67%) even If any employee draws more then Rs 6500/- for month the total cotribution towards Pension Fund is restricted toRs541/-the balance goes to the employees account. here if P.F is restricted to Rs 6500/-the burden of P.F Administrative charges of 1.61% on the total P.F salary is saving to the company. now a days many companies adding the same in the Employees C.TC, hence it is no loss to the companyand the Employee may fell that more amount is adding to his P.F.
From India, Hyderabad
From India, Hyderabad
Hi All,
in current scenario most of the companies are hiring on th basis of CTC that includes both portion of PF (employee & employer). in such situation there is no point to have ceiling upto 6500/- as all is to be deducted from CTC itself.
Companies which are hiring on cash in hand, can restrict PF upto basic of Rs. 6500/- as per statutory.
Hope I am correct....
regards,
Nishu
From India, New Delhi
in current scenario most of the companies are hiring on th basis of CTC that includes both portion of PF (employee & employer). in such situation there is no point to have ceiling upto 6500/- as all is to be deducted from CTC itself.
Companies which are hiring on cash in hand, can restrict PF upto basic of Rs. 6500/- as per statutory.
Hope I am correct....
regards,
Nishu
From India, New Delhi
as per Central Exices PF department PF is resticted to rs 6500/- on basic salary but its depend upon the employer management that wheather they applicable pf for all or they applicable pf scheme only whoes salary is below Rs 6500/- ( basic) and employee & employer both should contribute ir 12% by both of them another policy i.e. most of PVT LTD companies they deduct emloyer contribution from employee CTC so cant do anything they misguide u at the time of appointment means at the time of CTC structure so be aware abut that
From India, Mumbai
From India, Mumbai
As per the act, Employee should contribute 12% of (Basic+DA) and Employer should also contribute 12% of (Basic+DA). But 12% of Employer contribution will be calculated as below
Employee Pension Scheme = (Minimum(PF Wage, 6500)*8.33%)
Employer PF cont = Employee PF - EPS calculated above
Regards,
Arul Prakash D.
Payroll Analyst
Icomm Technologies
From India, Madras
Employee Pension Scheme = (Minimum(PF Wage, 6500)*8.33%)
Employer PF cont = Employee PF - EPS calculated above
Regards,
Arul Prakash D.
Payroll Analyst
Icomm Technologies
From India, Madras
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Employer-PF-res trict to wages of Rs 6500.pdf